When I was in high school, I enrolled in an electronics course. Let's just say that it was a few years ago and leave it at that. When something wasn't working the way it should, students would call the teacher over to help. As soon as he walked up to the desk, everyone knew what the first words out of his mouth would be.



“What's the problem?”

When I graduated high school and went to college, in one of my business classes, the instructor would ask when reviewing a business plan or some long problem that no one knew the answer to “What's the problem?”

The more I think about this question, the more I realize that sometimes there is not an easy answer. Although sometimes the answer may seem to stare you in the face, many times that is only the symptom of the problem.

Let's look at General Motors for example. One of the largest companies in the world and they are struggling to make money. Why? The answer to that question may seem easy – they are not selling enough cars. However, I don't believe that selling more cars is the answer although that would help their bottom line. I believe that the answer is to make cars that people want and then they would buy them.

Most people cannot afford to pay $25,000 for a car when according to the U.S. Census Bureau in a report in 2005, “median household money income in the nation in 2004 was $44,400, and was unchanged from 2003 in real terms.” I am not trying to pick on GM although I do think that arrogance has played a part in the predicament that they now find themselves. It seems to me that their attitude has been “whatever we build, they will buy.” That philosophy is proving not to be the case.

Let's return to the original question, “What's the problem?” I realize that I cannot solve GM's problems here although I do have some good ideas about what needs to be done to bring that company back to profitability including investing in more alternative fuel cars. The reason that I am mentioning their problems to you is to get you to thinking “What is my problem?”

Over the years, I have heard several times that there is a three step process to solving any problem that you may have and I believe that these steps hold true today.

Step 1. Identify The Problem. As in the case of GM, the problem is not that they are not selling enough cars. The problem is that they are not making cars that people want at a price they can afford. A prospector commented to a reporter once, “if you're digging for gold, go where the gold is.” GM should make the car that the customer wants. As a business owner, in order to be successful, you must give the customer what he wants.

Step 2. Find the solution. Sometimes, the solution may be easy, however, sometimes the small business owner must research the market to find out exactly what is necessary to improve the situation. Ask questions. Customers want to give their opinions – after all they will tell their friends “If that business were mine, I'd…….” Ask them what would encourage them to shop with you more. Write down the answers so you will have them in front of you so you won't procrastinate when making changes.

Step 3. Take Action. Although this is the final step, it is the most important. Follow through with your ideas. Make a plan and stick to it, however, it is not written in stone, if you have an idea that you think will be better, do it. Markets change and small business owners must be adaptable to any market.

In the end, it all boils down to this, "give the customer what he wants and that will solve your problem." In other words, dig where the gold is.